Extract Resources - Significant results continue from Rossing South

    SOUTH PERTH, Western Australia, July 16 /CNW/ - Extract Resources ("the
Company"), (TSX:EXT;ASX:EXT), a Uranium exploration company with projects in
Namibia, Africa, today announced that Reverse Circulation drill holes at
Rossing South have now extended over 6.2 km of the 15 km target zone. Results
from chemical assays, down-hole spectrometer surveying, and hand-held
spectrometer have indicated anomalous uranium values on every line of drilling
completed to date. Within this, two (2) large higher-grade zones of uranium
mineralisation have been identified:

    Zone 1 has been tested on 400m spaced traverses and shows apparent
continuity over 1,200 metres of strike and has been intersected up to 275m
below surface, in the deepest hole drilled thus far. Mineralisation is still
open along-strike to the south and at depth. Zone 1 is close to the license
boundary with the Rossing project area (Rio Tinto 69%).

    Zone 2 has been tested on 400m spaced traverses and shows apparent
continuity over 1,200 metres of strike and 290 metres depth, and which remains
open along-strike and at depth.

    Further results from Zone 2 have just been returned for both chemical
assays and down-hole spectrometer surveys, with some of the significant
intersections including:

    Hole ID            From (m)      To (m)              Mineralised zones
                                                   (U3O8 - chemical assay(*))
                                                     (eU3O8 - spectrometer)
    RB162                 80.0       118.0        38.0 m  at     1,072 ppm(*)
    RRC037                73.8       269.1       195.3 m  at       236 ppm
            including    219.6       242.0        22.4 m  at       748 ppm
    RRC038               190.2       268.9        78.7 m  at       403 ppm
            including    214.8       225.4        10.6 m  at     1,260 ppm
    RRC045               152.7       175.0        22.3 m  at       527 ppm
    RRC046               204.4       257.6        53.2 m  at       395 ppm
    RRC047               101.2       298.2       197.0 m  at       313 ppm
            including    198.0       227.1        29.1 m  at       808 ppm
    RRC048                99.5       270.9       171.4 m  at       276 ppm
            including    135.4       175.5        40.1 m  at       649 ppm
    RRC059               168.5       272.4       103.9 m  at       612 ppm
            including    168.5       193.3        24.8 m  at     1,888 ppm
    Note: eU308 refers to equivalent U308 grade derived from spectral gamma

    Wide zones of good grade, alaskite hosted uranium mineralisation continue
to be intersected at Rossing South which includes multiple high grade domains.
The prospect has progressed rapidly from a 'concealed' discovery to a large
resource definition target since the first drilling results were announced in
January 2008.

    The downhole logging was performed by Terratec Geophysical Services, a
Namibian based geophysical contractor using a spectral logging tool which has
been recently calibrated at the Pelindaba facility in South Africa. It should
be noted that spectral radiometric assays remain provisional until chemical
assays can be returned.
    Terratec are expected to return to site over the next fortnight so that
downhole spectrometer surveying can resume. These results, along with chemical
assay data will enable the Company to provide a steady news flow on progress
at Rossing South.
    Drilling continues at Rossing South, with two Reverse Circulation drill
rigs testing the boundaries of this large mineralised system before closing
the line spacing down to 100 metres to enable resource definition. Once a
water supply has been secured a core rig will also be mobilised to Rossing
South to extend RC holes that reached their depth capacity and ended in
    The immediate goal at Rossing South is resource definition drilling
concentrating on Zone 1 and 2. Exploration on the rest of the 15 kilometre
long target zone will resume at a later stage.
    The stratigraphy immediately north of the Namib Desert cover is steeply
dipping to the east and is thought to represent the northern extent of a large
south west trending dilatational zone with dips appearing to shallow along
strike to the south. The mineralised alaskites, under the desert cover, are
believed to be passive intrusives that have exploited this dilational zone
proximal to an unconformity surface. The following photo highlights this
relationship and shows that where the alaskites are exposed, they are
generally conformable to the regional stratigraphy.

    Appendix 1 shows the drilling that has been completed to date and clearly
shows the Rossing Mine stratigraphy trending into Extract's Husab licence and
under the Namib Desert cover.
    Appendix 2 shows the detailed chemical assay and downhole spectrometer
    Appendix 3 shows a representative cross section from Zone 2, drill line
7503600 North.

    To view Figure 1 - Rossing South, and Appendix 1, 2, and 3 please visit:

    Metallurgical test work
    Quarter NQ core has been shipped from site back to Australia and
submitted for metallurgical test work at a laboratory in Perth. This test work
programme will also include detailed mineralogy to help advance the
understanding of Rossing South. The results from this work will assist the
Company in refining the geological model and provide preliminary information
to assist with flow sheet and plant design.

    About Extract

    Extract Resources is an Australian-based uranium exploration company
whose primary focus is in the African nation of Namibia. The Company's
principal asset is its 100%-owned Husab Uranium Project which contains three
known uranium targets: Ida Dome; Hildenhof; and Rossing South. Rossing South
represents the Company's first new discovery in this area with enormous
potential. Extract is listed on the ASX and the TSX under the ticker symbol
"EXT". For more information on Extract visit www.extractresources.com

    The information in this report that relates to Exploration Results,
Mineral Resources or Ore Reserves is based on information compiled by Mr
Martin Spivey, who is a Member of The Australasian Institute of Mining and
Metallurgy and Mr Andrew Penkethman who is a Member of the Australian
Institute of Geoscientists. Mr Spivey and Mr Penkethman are both full time
employees of the Company. Mr Spivey and Mr Penkethman have sufficient
experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which they are undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves'. Mr Spivey and Mr Penkethman consent to the inclusion in this
report of the matters based on their information in the form and context in
which it appears.
    Reference to down hole spectrometer results in this announcement refers
to data collected by consulting geophysical contractor Terratec Geophysical
Services undertaking down hole logging with a Gamma Ray Spectrometer (GRS42).
This unit was calibrated at the Pelindaba facility in South Africa before
arriving on site. The uranium values are recorded as parts per million (ppm)
eU3O8 which is equivalent to ppm U3O8. Whilst results from this unit provide
an indication of uranium mineralisation present they may also be affected by
uranium mobility and disequilibrium. These factors should be considered when
interpreting eU information while waiting for confirmation chemical assay
    Reference to hand held spectrometer results refers to use of a Company
owned Exploranium, GR-135 Plus, hand held spectrometer. The uranium values are
recorded by placing the unit on the bulk RC sample bags and expressed as parts
per million (ppm) eU which is equivalent to ppm U. Results from these units
provide an indication of uranium mineralisation they may also be affected by
uranium mobility and disequilibrium. These factors should be considered when
interpreting eU information whilst waiting for confirmation chemical assay

For further information:

For further information: Peter McIntyre, Managing Director; Richard
Henning, Investor Relations, rhenning@extractresources.com

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